The only measure in the Budget as the announcement that the already proposed draught duty differential rate would be 11 pence on beer and cider in the on-trade, with which whilst welcome is only a very small help to pubs and benefits larger brewers far more than small ones.

The Campaign for Pubs had called on the Government to understand the serious threat to pubs and small breweries, all of which are now facing a perfect storm of dramatically rising costs, especially energy costs, and at the same time a customer base having to reduce their own spending. The Campaign made a submission to the budget consultation expressing these same concerns and calling for a package of emergency support including extending energy bills support and a VSAT cut for all pubs sales.

In mid-February, accountancy firm UHY Hacker Young revealed that insolvencies jumped from 280 in 2020/21 to 512 in the year ended 31 December 2022. That follows data from AlixPartners and CGA by NielsenIQ that showed nearly 18 net closures every day in the fourth quarter of 2022.

At the same time, small breweries have been closing at a rate never seen before, with over 85 breweries having closed their doors, eroding the diversity of the UK brewing sector.

Costs for pubs and for brewers, especially energy and product costs, continue to rise significantly alongside a cost-of-living crisis that reduces customer spending. The current level of support for pubs and small breweries is simply inadequate and many more businesses are worried about their future, unless energy bills come down and consumer confidence returns.

Paul Crossman, Chair of the Campaign for Pubs and a publican in York said:

“Today’s Budget is a huge disappointment for the people and the small businesses who actually run most of the UK’s precious pubs. Once again the Government has been persuaded to reach for beer duty as the “solution” to the crisis for pubs when in reality this will make no meaningful difference.

“The Government needs to finally stop pandering to the disingenuous lobbying of the big brewers and pub companies who now stand to get a potential profit windfall from this duty tweak, and instead listen to experienced publicans who will be bitterly disappointed at the lack of action in areas that could have made a real difference to the entire sector such as VAT and commercial energy costs”.

Dawn Hopkins, Vice-Chair of the Campaign for Pubs and a publican in Norwich said:

“It’s incredibly disappointing, if alas not surprising, that the Chancellor has provided no direct support for pubs in the Budget, despite the cost-of-living crisis and worse still, is ending the current energy support for businesses, which will see energy bills spiral. If the Government were serious about supporting pubs and hospitality, they would have kept this support, cut VAT and finally announced the long-awaited overhaul to the business rates system they have promised again and again. Those promises are clearly hollow.

“The crass comment about warm beer shows that Jeremy Hunt doesn’t go to the pub and he certainly doesn’t understand the serious situation pubs, publicans and small brewers are in. We will lose even more of our nation’s pubs and small breweries if this Government continues to ignore calls for targeted support.”

Phil Saltonstall, brewer representative of the Campaign for Pubs and founder of Brass Castle Brewery said:

“Another frustrating day to be a small brewer: hoping for a touch of government assistance to offset the challenges of increased energy prices and the cost-of-living crisis but again being disappointed.  Instead, the Chancellor announces a token draught duty measure that will only give meaningful benefit to large multinational brewers and pub companies, with the accompanying promise of upcoming RPI-linked increases to alcohol duty”.

“It is yet another velvet-gloved punch for us and our colleagues in the independent hospitality industry to roll with.  To add insult to injury, the Chancellor has misleadingly claimed that this token measure was made available by Brexit.  He ignores the fact that export volumes from UK small breweries to Europe are all down significantly as a result as a result of post Brexit complications, costs and red tape.  This does nothing to address the record number of ongoing small brewery closures across the UK..”

ENDS